A Characteristic of the Short Run in Macroeconomics Is That

question 48

Multiple Choice

A characteristic of the short run in macroeconomics is that

• A)actual GDP is always growing at the same rate as potential GDP.
• B)the output gap opens or closes as the economy moves through the phases of the business cycle.
• C)the output gap is constant because the capital stock cannot change.
• D)actual GDP is always less than potential GDP.
• E)actual GDP is always greater than potential GDP.

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Definitions:

Sociology

The study of the development, structure, and functioning of human society, including the analysis of social relationships and institutions.

Time

The continuous, irreversible progress of existence and events in the past, present, and future regarded as a whole.

M.B.A.s

Masters of Business Administration, a graduate degree focused on business management, covering areas such as accounting, finance, marketing, and operations management.

Economics

The social science concerned with the production, distribution, and consumption of goods and services.